Elaine,
OMB A-21, section G.7.
http://www.whitehouse.gov/omb/circulars/a021/a021.html dictates that
the project indirect cost rate be that in effect at the time of the
award [not the proposal] and remain in effect for the life of the
award:

"...7. Fixed rates for the life of the sponsored agreement.
a. Federal agencies shall use the negotiated rates for F&A costs in
effect at the time of the initial award throughout the life of the
sponsored agreement. "Life" for the purpose of this subsection means
each competitive segment of a project. A competitive segment is a
period of years approved by the Federal funding agency at the time of
the award. If negotiated rate agreements do not extend through the life
of the sponsored agreement at the time of the initial award, then the
negotiated rate for the last year of the sponsored agreement shall be
extended through the end of the life of the sponsored agreement. Award
levels for sponsored agreements may not be adjusted in future years as
a result of changes in negotiated rates...."

Whether the award is increased to accommodate the higher, actual
rate(s) depends on the sponsor and the type of award. It's certainly
worth a try.
Michael

Michael Fish
Director, Grants Development Office
California Polytechnic State University
San Luis Obispo, CA 93407
xxxxxx@calpoly.edu
(805) 756-2982

-----Original Message-----
From: ey [mailto:xxxxxx@UMBC.EDU]
Sent: Tuesday, November 05, 2002 1:44 PM
To: RESADM-L
Cc: ey
Subject: [RESADM-L] Changing IC Negotiated Rate

We have recently renegotiated our IC rate upward.  How do you handle new
grants that were submitted under the old (provisional) rate but awarded
under the new rate?  Do you find sponsors sympathetic and willing to
increase the size of the grant to accomodate the increase?  Any special
buzzwords to use when talking to sponsors?

Thanks

Elaine Young, Ph.D.
Associate Vice Provost for Research
University of Maryland, Baltimore County
1000 Hilltop Circle, Admin 204
Baltimore, Maryland 21250

(410) 455-1336
(410) 455 1876
xxxxxx@umbc.edu

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